In a fresh development for the medical and financial communities, the U.S. Food and Drug Administration (FDA) approved Emergent Biosciences’ (NASDAQ:EBS) Narcan nasal spray as an over-the-counter (OTC) emergency opioid overdose treatment. As you might expect, EBS stock traders are responding to this news with high-volume buying activity.
Emergent Biosciences provides vaccines and therapeutics targeting a variety of health conditions. One of those conditions is opioid overdose. According to the company, someone dies from an opioid overdose around every eight minutes. Moreover, this “epidemic is escalating in the U.S. with the rise in synthetic opioids.”
Thus, Emergent Biosciences is advancing Narcan nasal spray in the 4-milligram dosage for the emergency treatment of opioid overdose. This product could literally be a lifesaver in certain situations.
However, this treatment has required a prescription in the U.S. Consequently, Narcan’s access to the public was limited — but that’s changing now. Earning OTC status from the FDA means Emergent Biosciences’ Narcan should soon be available to many more people.
What’s Happening With EBS Stock?
EBS stock exploded higher this morning, pushing past the $10.50 level for a hot minute. Shares pulled back soon afterward, however, settling up 7% in the $9.50 area.
That’s a natural response from investors, as getting OTC status for Narcan represents a massive win for Emergent Biosciences. Possibly, shares didn’t move even higher (as in 20% or 30%) because Emergent Biosciences has a product portfolio that’s diversified beyond Narcan.
All of this begs the question of when we should expect Narcan to be available to the public without a prescription. Emergent Biosciences answered this question, forecasting that the product “will be available on U.S. shelves and at online retailers by the late summer.”
Clearly, this development sounds like a win-win for people in need of emergency treatment, as well as for Emergent Biosciences. As traders bid up the EBS stock price, they’re expressing confidence that Narcan will be a strong seller this year.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
